Northern Smallholder Livestock Commercialization Project (NSLCP)

Supported by

Asian Development Bank(ADB) International Fund for Agricultural Development (IFAD) ACIAR Goat production & Marketing Workshop

Luangprabang , 19-20 Jun 2016 I. Background

• Lead Agency : Department of Livestock and Fisheries (DLF). • Supporting Agencies: DLF,NAFRI,DAEC,NARF • Implementing Agency: 4 PCU and 12 DCU Project costs by financier

In thousand USD In %

ADB 21,000 60.1

IFAD 10,000 28.6

Lao Government 2,030 5.8

Bilateral Partner 1,900 5.4 (TBC) Total 34,930 100 The Overall Goal

• To raise incomes for smallholder livestock producers in the project areas, through increased livestock productivity and access to rural finance. Expected impact & Outcome

➢LPMG members will sell heavier live animals: 55kg (from 45kg)for pigs and 225kg (from 200kg) for cattle; ➢Sell more animals with increased annual sales of 18 (from 12) for pigs and 5 (from 3) for cattle. Project components LPMG GROUP MARKET DEVELOPMENT DEVELOPMENT Component 1: CAPACITIES OF SMALLHOLDERS AND OTHER VALUE CHAIN ACTORS 1.1 Livestock Production and 1.4 Certification mechanism Marketing Groups LPMGs

1.2 Land use management 1.6 Policy and regulatory support

1.3 Livestock Technical Services 1.7 NAFC Curricula and Scholarships

1.5 Poverty and Gender Inclusivity

Component 2: INFRASTRUCTURE AND EQUIPMENT

2.2 Slaughterhouses

2.1 LPMG grants for equipment 2.3 Wet market infrastructure

2.4 Meat processing facility

Component 3: RURAL FINANCE SERVICES

3.2: Networked village funds 3.1: Livestock Producer Group Loans 3.3: National Agriculture Refinancing Facility NARF

Chart 3: DEPARTMENT COORDINATION STRUCTURE

DAEC NAFRI •Coordinator •Coordinator

•Farmer Group •Agriculture Land Use

•Extension •Agro business Plan

•Credit •Animal Breeding NPMO’s Technical Unit

DLF NAFC •Coordinator •Coordinator

•Animal Health •Curriculum

•Nutrition Services •Internship

•Vaccine Supply •Meat Processing

•Slaughtering and Butcher

•Market Hygiene Project sites I. province 1. Phonexay district 2. Phoukhoun district 3. Viengkham II. Luangnamtha province 1. Sing district 2. Vienphoukha district 3. Nalae district III. Houapanh province 1. 2. 3. Xiengkhor district IV. Xiengkhuang province 1. Nonghet district 2. Phaxay district 3. Khoun district Provincial and district targets for LPMG development.

Province District No of target Target number of Target number villages LPMGs LPMG households

Singh 17 25 450 Viengphoukha 17 25 450 LuangNamtha Nalae 16 25 450 TOTAL LN 50 75 1,350 Phoukhuon 18 25 450 Phonexay 16 25 450 LuangPrabang Viengkham 16 25 450 TOTAL LPB 50 75 1,350 Viengxay 18 25 450 Xiengkhor 13 25 450 Houapanh Aed 19 25 450 TOTAL HP 50 75 1,350 Nonghet 20 25 450 Khoun 15 25 450 Xiengkhouang Phaxay 15 25 450 TOTAL XK 50 75 1,350

Total 200 300 5,400 The priority animal types

Item Province District Promising animal types 1 LuangNamtha Singh Pigs and cattle Viengphoukha Pigs,cattle and goat Nalae Goats and cattle 2 LuangPrabang Phoukhuon Cattle and goats Phonexay Cattle and goats Viengkham Cattle and goats 3 Houapanh Viengxay Cattle and goats Xiengkhor Pigs and goats Aed Pigs and goats 4 Xiengkhouang Nonghet Cattle Khoun Cattle Phaxay Cattle II. Key aspects and goat enterprises • Existing production system

Project sites Penned system Enclosure system Free ranging system Sopsan village No ✓ Xiengkhor District (HP) Phoulet village No ✓ Viengphoukha (LT) Vad and Hadlom No ✓ village Nalae district (LT) II. Key aspects and goat enterprises cont’

• Productive limitations 1. Management system 2. High mortality rate (40%) 3. Feed supplement 4. Breeding control 5. Market issue Current Enterprise (1 female\3 years cost of female (1 female) 1,000,000 feed supplement 240,000 Norm cost of forage\3 years 618,000 Mortality rate 40 % Vaccine\Antibiotic 220,000 Productive number (1 female\3year 8.67 Labor cost\3 years 1,642,500 Number of mortality 40% 3.47 Number of survive 5.20 tax for 06 goats 30,000 cost of pen\3 years 60,000 Total investment 3,810,500 Total income (1 female + 6 goats) 5,200,000

Benefit (1 female\3 years 1,389,500 Future plan

1. Production system (moving to fattening system) 2. Decrease mortality rate (<35%) 3. Breeding plan 4. Increase growth rate via appropriate feeding technology. 5. Market pathway. Cooperative research

• Exchange research results with other projects through learning alliance.